Stakeholders in South Africa’s gold mining industry need to collaborate so that the country can regain its standing as a major gold producer and realise the significant value that the sector can potentially contribute to the local economy, says gold industry market development organisation World Gold Council market intelligence head Alistair Hewitt.
He avers that government, mining companies, mineworkers and local communities need to join forces to improve the country’s global positioning in terms of gold production, especially as the global market strengthens.
A large number of investors worldwide have rekindled their interest in gold, following the precious metal’s performance in 2016, says Hewitt. The gold price rose by 8% to $1 248/oz last year, making it one of the best-performing assets in 2016, heightening awareness of substantial macroeconomic and geopolitical risks – including Brexit, negative interest rate policies, the election of US President Donald Trump and forth-coming elections in Europe – which have boosted investment in the commodity.
Global demand for the precious metal rose 2% in 2016 to 4 309 t, primarily driven, Hewitt points out, by annual inflows into gold-backed exchange-traded funds, which saw inflows of 532 t – the second highest level on record. This led to a four-year investment high that more than offset the slowdown in central bank purchases and weak jewellery demand, he says.
“We believe that a combination of macroeconomics and fundamentals will continue to support a healthy gold market in 2017.”
Gold demand in South Africa is relatively low; however, Hewitt highlights that, with its generous mineral reserves and high-grade orebodies, the country has great potential as a gold producer. Despite this, South Africa’s 2016 gold production remained unchanged at 167.1 t from the previous year’s output.
هذه القصة مأخوذة من طبعة Mining Weekly 10 March 2017 من Mining Weekly.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة Mining Weekly 10 March 2017 من Mining Weekly.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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